Saudi Arabia has been digging deep in its efforts to prop up global oil markets, cutting crude production by far more than its obligation under the ‘Opec+’ output deal. Although the impact on the kingdom’s oil sector was relatively muted in the beginning of the year, it is now being felt heavily as domestic demand for fuel soars amid the sweltering summer heat.
The kingdom’s gas production is insufficient to fully supply its power stations at the best of times, and with associated gas output falling in line with crude production the situation is becoming increasingly acute. More and more liquids are being diverted to power plants, although volumes remain considerably lower than in recent history as a concerted effort to develop non-associated gas production has paid dividends. (CONTINUED - 1851 WORDS)